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CETA: Wynne hails ‘very good deal,’ but warns Ontario has concerns

Premier Kathleen Wynne is touting the Canada-Europe free trade accord as “a very good deal” for Ontario, but warns Ottawa still must address some of the province’s concerns

Premier Kathleen Wynne believes the Canada-Europe free trade deal is a "very good deal” for Ontario, but warns Ottawa still must address some of the province’s concerns (Mark Blinch / THE CANADIAN PRESS file photo)

Premier Kathleen Wynne is touting the Canada-Europe free trade accord as “a very good deal” for Ontario, but warns Ottawa still must address some of the province’s concerns.

Speaking in Sault Ste. Marie on Friday after Prime Minister Stephen Harper signed the historic arrangement, Wynne emphasized Ontario is “not going to be blocking the deal.”

“We’re not making it conditional. We support the deal. We think it’s a good deal. But we’ve raised these concerns as has Quebec,” she said, referring to the impact on the cost of brand-name pharmaceuticals for the provincial formulary as well as on domestic cheese makers, wineries, and distilleries.

“I expect — given conversations that we’ve already had with the Canadian government — that we’ll be able to find a way. In fact, there was a sort of vague comfort letter that had been drafted from the federal government on the pharmaceutical costs,” the premier said.

“We think overall (it is) a very good deal for Canada and for Ontario . . . having access to a market of 500 million people,” said Wynne. Ontario’s two-way trade with the European Union was worth $40 billion last year.

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“But . . . we want some more and clearer assurance that we’re going to get some compensation.”

While the province is appeased by Ottawa’s promise of aid for artisanal cheese makers, Economic Development and Trade Minister Eric Hoskins said there’s no similar arrangement for winemakers and distillers.

Under the accord — officially known as the Comprehensive Economic and Trade Agreement (CETA) — Ontario will move to a per-bottle tariff instead of the existing “ad valorum” tax based on the price of the booze.

That should make everything from single malt Scotch to first-growth Bordeaux cheaper for Ontario consumers, but could be tough to swallow for local producers of wine and spirits.

Hoskins admitted the province “has not received that assurance” from Ottawa to help domestic industry for any losses due to CETA.

However, the minister said the deal removes 98 per cent of tariffs and should create some 30,000 jobs across Ontario, providing a shot in the arm for many industries, including automobile manufacturing.

Exports of domestic vehicles to Europe, currently about 13,000 a year, are expected to rise to 100,000 annually, he said.

Sources say the province was also able to insert a 25 per cent Canadian-content policy for transit vehicles to help bus and train manufacturers, and ensured that Infrastructure Ontario was exempt from CETA.

That should allay some fears from municipalities about procurement, an official confided.

Progressive Conservative Leader Tim Hudak hailed the deal.

“This is the richest market in the world,” said Hudak, adding it is a boon for “our producers from autos to auto parts to mining to farmers in pork, in beef, in grains and oilseeds.

“We can sell a lot more cars, we can sell a lot more of our high-tech, a lot more of our environmental industry products, a lot more of our financial services.”

NDP MPP Peter Tabuns (Toronto Danforth) had some reservations.

“Obviously, we have concerns about agriculture, we’re concerned about milk producers. We’re concerned about the ability of provinces and cities to set their own purchasing policies,” said Tabuns.

“To us, having lower prices if you’re not going to have a job is not going to be a net benefit.”

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